€3.6m for fully-let south Dublin office block

The sale of a newly-refurbished and fully-let office property at Tallaght in south Dublin is expected to see strong interest from investors

Joint agents QRE and Savills are guiding a price of €3.6 million for Hainault House at Belgard Square, offering the prospective purchaser an attractive net initial yield of 7.1 per cent.

The subject property briefly comprises a modern standalone office block extending to 1,891sq m (20,350sq ft) and arranged over three floors with 59 surface car-parking spaces. The building has benefitted from a significant course of refurbishment under its current owners, Jones Investments.

Since acquiring the property in 2016, the company has transformed Hainault House from a standard 1990s building into a modern office property. Upgrade works were carried out both externally and internally and include an ultra-modern triple-height reception area, new WC and shower facilities. The office floorplates are L-shaped with central core and generous floor-to-ceiling heights.

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Refurbishment

Jones Investments have a proven track record of similar asset management initiatives, which include the acquisition, refurbishment and disposal of The One building on Grand Canal Street and the Dockmill building on nearby Barrow Street. The company is currently on site constructing The Bottle Factory, a 3,716sq m (40,000sq ft) development close to Google’s European headquarters on on Barrow Street.

Following the completion of its upgrade, Hainault House is now fully let to the Citizens Information Board, Optical Express and Early Childhood Ireland, and is generating contracted rental income of €281,000 per annum.

The €3.6 million guide price reflects a capital value of approximately €177 per sq ft together with strong reversionary potential in the short term. The investment provides for a weighted average unexpired lease term (wault) to expiry of more than 10 years and a wault to break of about seven years.

The subject property is positioned between the Plaza Hotel and the Square Town Centre on Belgard Square South and benefits from its proximity to Dublin city centre just 10km away.

Joint selling agent QRE and Savills say: “We expect Hainault Houseto be of interest to high-net worth individuals, family offices and property funds, seeking to take advantage of the strong net initial yield in light of the current low interest rate environment.

“In addition to this, the term certain income and capital value, which is significantly below replacement cost, is expected to attract opportunistic investors.”